The Philippines and the United States will meet this month to iron out differences over a two-decade-old Visiting Forces Agreement (VFA), Manila’s top diplomat said, amid renewed concerns in the region over China’s assertive maritime agenda.
The Philippines in November suspended its decision to terminate the VFA for a second time to allow it to work with Washington on a long-term mutual defense pact.
“The suspension was intended that we should continue working and I am narrowing down the issues and soon we will meet… and iron out whatever differences we have,” Foreign Affairs Secretary Teodoro L. Locsin, Jr., told ANC news channel on Monday, adding a meeting was likely in the last week of February.
He declined to elaborate on the terms of a potential agreement.
President Rodrigo R. Duterte notified Washington in February last year that he was canceling the deal amid outrage over a senator and ally being denied a US visa.
But he has extended the termination process, which has now reached US President Joseph R. Biden, Jr.’s term.
The VFA provides the legal framework under which US troops can operate on a rotational basis in the country and experts say without it their other bilateral defense agreements, including the Mutual Defence Treaty (MDT), cannot be implemented.
Last month, US Secretary of State Antony Blinken stressed the importance of the MDT and its clear application if Manila came under attack in the South China Sea.
Mr. Blinken’s comments came as Manila had filed a diplomatic protest over China’s passing of a law allowing its coastguard to open fire on foreign vessels, describing it as a “threat of war.”
China claims almost all of the South China Sea, which is a major trade route. The Philippines, Brunei, Vietnam, Malaysia and Taiwan have overlapping claims.
Mr. Locsin said he would continue to press for a code of conduct in the disputed waters that “will never exclude” the United States to ensure the balance of power between Washington and Beijing in the region. — Reuters
South Africa will pause its rollout of the AstraZeneca coronavirus disease 2019 (COVID-19) vaccine after a small study suggested it offers minimal protection against mild and moderate infection from the South African coronavirus strain known as B.1.351.
The South African health minister said the government was waiting for scientific advice on next steps.
A media release issued overnight by the University of Oxford said a study of about 2,000 volunteers with an average age of 31 found a two-dose regimen of the AstraZeneca vaccine (officially known as ChAdOx1 nCov-19):
provides minimal protection against mild-moderate COVID-19 infection from the B.1.351 coronavirus variant first identified in South Africa. Efficacy against severe COVID-19 infection from this variant was not assessed.
The analysis is yet to be peer-reviewed or published.
The AstraZeneca vaccine, sometimes also called “the Oxford vaccine,” is a core plank in Australia’s coronavirus vaccine plan, with the Australian government securing 53.8 million doses. It’s worth remembering, though, that it’s just one of the vaccines that will be made available in Australia—and that vaccines are just one of a range of responses we will need to get the pandemic under control.
So what’s all this mean for you? There’s no doubt this news is disappointing—but it’s also no great surprise given how quickly this virus mutates. And it doesn’t yet mean Australia should abandon its plan to rollout the AstraZeneca vaccine.
The sobering reality is setbacks such as these are to be expected in vaccine development, especially when dealing with an agile, fast-mutating virus such as this coronavirus.
STILL BETTER FOR AUSTRALIA TO HAVE ASTRAZENECA THAN NOT
It’s reasonable for the South African government to pause while it reflects on what these new data mean.
For Australia, it’s too early to bin the AstraZeneca vaccine as part of our rollout, especially as the South African variant is not yet prevalent here. If we did that every time we got new data, we would never get any vaccines out. I think, at this point, it is still better to have the AstraZeneca vaccine in Australia than to not have it.
Based on Australia’s current circumstances, I think it’s reasonable to say we just need anything that will help reduce the risk of severe disease. That will help ease the burden on healthcare systems.
We will get better vaccines coming out all the time. It’s an iterative process.
Encouragingly, Oxford said in its press release that:
Work is already underway at the University of Oxford and in conjunction with partners to produce a second generation of the vaccine which has been adapted to target variants of the coronavirus with mutations similar to B.1.351, if it should prove necessary to do so.
SUCH AN AGILE VIRUS DEMANDS A RANGE OF RESPONSES
These new developments highlight how quickly this incredibly agile coronavirus adapts and changes. While the level of infection remains so high, we must get used to the idea that new strains will be appearing all the time.
Vaccines are best suited to stationary targets and currently, SARS-CoV-2 is anything but—with so much human infection occurring, the virus has huge opportunity to mutate and generate variants.
Having said that, the newest vaccine technologies such as mRNA vaccines (including what’s commonly known as the Pfizer vaccine) can rapidly update and reformulate to keep up with mutant viruses.
Of course, it still takes some time to manufacture and distribute new vaccines so there will inevitably be a lag of months between identifying a new virus variant and making and distributing an updated vaccine.
A month is a long time in a pandemic. That underscores how critical treatments addressing these gaps are going to be if we are to have any chance of bringing this pandemic to an end within the next couple of years. Those responses will likely include antivirals that reduce duration of infection and other treatments that provide rapid, broad-spectrum protection against viruses by directly boosting innate immunity in the airways.
MANAGING EXPECTATIONS
Vaccines can have amazing efficacy in clinical trials but things may be different in the real world when you are dealing with different populations and exposure to different virus strains. That is a normal part of vaccine development and global rollout, and we must manage expectations around this.
We always knew the first generation vaccines would be far from perfect, and certainly not a magic bullet. As scientists have said all along, this is a long game with incremental gains. And with so much research focused on beating this pandemic, there is huge reason for optimism.
We don’t want people to be discouraged from getting vaccines. Based on current circumstances and the fact the South African variant is not yet prevalent in Australia, the AstraZeneca vaccine will be one of a suite of responses that will help bring a reduction in serious disease in the first place—and ultimately prevent transmission as vaccines become more effective and supported by other treatments.
Just like you get a new flu shot every year, so it may be in the future you get a new coronavirus jab as better and more targeted vaccines become available.
New treatments will become available to support better and better vaccines, which will slowly but surely bring an end to this pandemic. — The Conversation
Nathan Bartlett is an associate professor in the School of Biomedical Sciences and Pharmacy, University of Newcastle, Australia.
Because of GameStop Corp.’s wild roller coaster ride on the New York Stock Exchange, people have been talking about retail investing and how social media is changing the game.
The video game retailer’s stock price hit a high of $483 in what has been framed as a battle between “the little guys” of Reddit against the suits of Wall Street who had heavily shorted GameStop shares.
In this episode of B-Side, Edward K. Lee, chairman and founder of COL Financial Group, Inc., speaks with BusinessWorld reporter Revin Mikhael D. Ochave about short selling, GameStop shares, and the Philippine stock market.
TAKEAWAYS
Know the rules of the game.
“Whatever it is you are doing, you have to know the rules of the game—how it should really be done,” said Mr. Lee.
“People are opening accounts just to speculate. They are just gambling, without understanding how they do it,” he said. “Are you a passive investor, an active investor, or an active trader? A person should understand the rules clearly. You should know and apply the rules because if not, you can make so much money in one day, but it can all disappear in a snap.”
Be wary of ‘the madness of the crowd.’
A majority of people who trade in penny stocks lose money, said Mr. Lee. “People go with the trend without even knowing what they are buying. As long as the stock price goes up, they just buy stocks and go with it. Yes, you can win a lot. But eventually, you can lose a lot also. So they have to really be careful,” Mr. Lee said, who warned against the “madness of the crowd.”
Keep an open mind and an optimistic mindset.
“If you have time, the stock market is a good thing to learn,” Mr. Lee said, who advised those who are interested to open their minds, read up, and trade systematically. Trading and investing in the stock market is a skill, he added, that can “put the world at your fingertips.”
“What is important for most investors is that they have to keep an open mind. They have to use this pandemic as a means of opportunity. Those planning to invest or trade need to have an optimistic mindset. If you do not have an optimistic mindset, nothing will happen to you,” he said.
Related story: The Philippine Stock Exchange (PSE) will allow short selling as soon as issues on borrowing and lending of securities before the Securities and Exchange Commission and tax bureau are resolved. “The probability of a GameStop incident happening in the Philippines is quite small, if not nil,” said PSE President Ramon Monzon said.
The Philippines is eyeing foreign loans to fund its coronavirus disease 2019 (COVID-19) immunization program this year. — PHILIPPINE STAR/MICHAEL VARCAS
THE Philippines is planning to borrow $23.71 billion (P1.14 trillion) from foreign lenders this year to plug its ballooning deficit amid the pandemic, a Finance official said over the weekend.
“We are planning to source a total of $7.67 billion (P369 billion) in loans and grants from multilateral institutions, $10.54 billion (P507 billion) from our bilateral partners; and raise $5.5 billion (P264 billion) from the commercial markets this year,” Finance Undersecretary Mark Dennis Y.C. Joven said in a statement over the weekend.
Around 66% or $15.65 billion of the loans will be in the form of project financing, while 34% or $8.06 billion will support the national budget.
The Asian Development Bank (ADB) has set a $3.568-billion (P172-billion) lending program for the Philippines this year. Half of the amount or $1.75 billion (P84 billion) will go to the first phase of the South Commuter Railway Project, and the rest for other infrastructure projects.
The World Bank is also looking to grant $1.588 billion (P76 billion) in loans to the Philippines this year, after lending $1.87 billion (P90 billion) in 2020.
The government has tapped the World Bank for a $500-million loan to fund its mass vaccination drive against the coronavirus disease 2019 (COVID-19), while the ADB committed to lend at least $350 million.
This year, the government is planning to raise P3 trillion from domestic and external lenders to help fund the budget deficit that is seen to hit 8.9% of gross domestic product.
“The government has consistently availed debt for budget support, recognizing that program loans and global bonds provide more flexibility in terms of utilization,” Mr. Joven, who heads the Department of Finance’s International Finance Group (IFG), said.
In 2020, the government obtained $17.06 billion (P820 billion) in loans from external sources, of which $7.73 billion (P372 billion) came from multilateral lenders.
“Because of a higher emergency funding requirement in light of COVID-19, the amount of external financing contracted in 2020 increased by 75.43% year on year. This also represents an overall 33% expansion of the external borrowing program from 2016 to 2020,” Mr. Joven was quoted as saying in the statement.
The $17.06-billion foreign loans last year consisted of 85% or $14.52 billion in budget support and the rest worth $2.54 billion were in project loans meant to cover the funding needs of multi-year projects rolled out in 2020.
Around 90% or $15.44 billion (P742 billion) was used for the pandemic response, while $1.62 billion (P78 billion) went to infrastructure projects. — Beatrice M. Laforga
The central bank is likely to keep policy rates steady despite a spike in inflation in January. — PHILIPPINE STAR/MICHAEL VARCAS
By Luz Wendy T. Noble, Reporter
THE central bank is widely expected to maintain key policy rates at record low levels on Thursday, as it waits for fiscal policy to do its part in quelling the recent spike in inflation.
In a BusinessWorld poll held last week, 17 out of 18 analysts said they expect the Monetary Board (MB) to leave interest rates unchanged at its first policy-setting review this year on Feb. 11.
Analysts said any change in benchmark rates will come later this year or in 2022, as the Bangko Sentral ng Pilipinas (BSP) reserves its ammunition in supporting the economy during the crisis.
“We think they will maintain all settings (in the) next meeting as inflation is on the rise and this year’s target is at risk of being breached. A rate cut would be excessively aggressive and subject markets to unhealthy degree of volatility,” Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. said.
Consumer prices surged for a fourth straight month to a two-year record in January. Headline inflation soared to 4.2%, surpassing the 2-4% annual target set by the central bank. The BSP expects headline inflation to average 3.2% this year.
Rates for the overnight reverse repurchase, lending, and deposit facilities are currently at record lows of 2%, 2.5%, and 1.5%, respectively, after the BSP slashed rates by a total of 200 basis points (bps) in 2020.
BSP Governor Benjamin E. Diokno on Friday said the projected uptrend in inflation is temporary. “The sources of near-term inflation pressures are supply-side shocks in nature that should not require a monetary policy response unless they lead to further second-round effects,” he added.
Mr. Neri said another rate cut at this point may mean more damage given some home prices have started to pick up.
“Rising property prices (townhouses, etc.) is an indication that deflation is not a big risk, [and] that more rate cuts can translate to higher rental rates,” he said.
Prices of townhomes and single detached/attached houses rose by 12% and 7.4% year on year, respectively, in the third quarter last year, based on BSP data.
Meanwhile, the implementation of a 60-day price ceiling on selected meat and chicken products in Metro Manila will address “first-round effects” of inflation that affect commodity prices.
“It looks like BSP is willing to accommodate the so-called ‘first round effects’ and only look to act should signs of ‘second round effects’ such as wage or transport fare adjustments become apparent,” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said.
Asian Institute of Management economist John Paolo R. Rivera, on the other hand, is pricing in another rate cut on Thursday.
“Given the economic contraction we had in 2020 and rising inflation (cost push inflation), BSP might slightly cut off rates further by a few percentage points. This is to induce spending among consumers that will boost domestic consumption and investment expenditures,” Mr. Rivera said.
The country’s gross domestic product (GDP) contracted by a record 9.5% last year, as it struggled to contain the fallout from the coronavirus disease 2019 pandemic.
Some analysts said the BSP will go for a pause on Thursday, but will likely resume easing later this year.
“If by end of the first quarter the real economic indicators do not show improvement and government spending remains lackluster, the central bank will likely go for another 25 bps rate cut in March,” ANZ Research economist Kanika Bhatnagar said. The MB’s next policy-setting meeting is on March 25.
Alex Holmes, an economist at Capital Economics, said the BSP may consider the continued need to support the economy with recovery likely to underwhelm in the next quarters.
“[W]hile the current trend in inflation is likely to delay the central bank from easing further, it is unlikely to stop it. We are sticking with our forecast for 50 bps of cuts this year,” Mr. Holmes said.
HSBC Global Research economist Noelan Arbis expects the central bank to pause easing this year but raise policy rates by a total of 75 bps in 2022, “assuming the virus is contained at that time.”
“Long periods of negative interest rates could have a negative impact on the economy, not just on inflation but also in terms of financial stability. Persistently low interest rates could add to the risks to the banking sector, as it incentivizes a buildup in household debt,” Mr. Arbis said.
Meanwhile, analysts said there is still room for cutting the reserve requirement ratio (RRR) of banks, although this could come later in the months ahead.
“Ample liquidity remains so there is no need to cut reserve requirements at this time. [RRR cut will] most likely occur towards the second half of the year,” BDO Unibank, Inc. Chief Market Strategist Jonathan L. Ravelas said.
The BSP slashed RRR of big banks by 200 bps last year, while reserve requirements of thrift and rural lenders were cut by 100 bps to 3% and 2%, respectively. Mr. Diokno said policy measures last year have infused about P2 trillion in liquidity. However, data show banks are not utilizing this to expand credit.
In December, outstanding loans by big banks dropped 0.7% year on year, the first decline in over 14 years. Previous months showed tepid lending growth, as banks tightened credit standards and borrower confidence remained weak.
“We believe that reviving loan growth at this point is more dependent on government initiatives that improve the cash flow of businesses such as CREATE (Corporate Recovery and Tax Incentives for Enterprises) and FIST (Financial Institutions and Strategic Transfer) [bills],” said Alvin Joseph A. Arogo, vice-president and head of equity research division at Philippine National Bank.
CREATE will bring down corporate income tax immediately to 25% from 30%, while FIST will allow financial institutions to transfer their nonperforming assets to asset management companies. Both measures are now up for President Rodrigo R. Duterte’s signature.
Prior to the pandemic, Mr. Diokno vowed to bring down the RRR to a single digit by the end of his term in mid-2023.
THE central bank is widely expected to maintain key policy rates at record low levels on Thursday, as it waits for fiscal policy to do its part in quelling the recent spike in inflation. Read the full story.
A WORKER of Ayala Corp.’s Integrated Micro-Electronics, Inc. (IMI) is pictured at its electronics manufacturing assembly plant in Biñan, Laguna, April 20, 2016. — REUTERS
By Jenina P. Ibañez, Reporter
THE decline in electronics exports last year exceeded industry projections after an anticipated rebound in demand failed to materialize.
Electronics exports fell 8.8% to $39.67 billion in 2020 from the revised $43.29 billion the previous year, data from the Philippine Statistics Authority showed.
Semiconductor and Electronics Industries in the Philippines, Inc. (SEIPI) President Danilo C. Lachica said the accelerated recovery did not happen as expected after the decline exceeded the industry group’s projection of a 5% drop.
“Demand did not materialize,” he said in a mobile message last Monday.
SEIPI revised its projection to a 5% drop in November, basing the decline on the high cost of operations as firms shouldered employee transportation in response to coronavirus disease 2019 (COVID-19) restrictions.
The initial projection was a much steeper 20% contraction, but SEIPI had said that prospects were improving as demand for industrial, mobility, consumer, and medical electronics increased and the global economy began its recovery.
Shipments of electronic goods make up a bulk of Philippine total goods exports, accounting for 62% of the value of exports last year. SEIPI combines “electronics products” and “other electronics” in its assessments of government data.
Mr. Lachica said that he does not expect last year’s demand shortfall to have a significant effect on the 7% growth target this year.
Some companies, he said at an online meeting last week, expect to grow by as much as double digits this year. In a mobile message, Mr. Lachica indicated that automotive, commercial, communications, and medical electronics demand will drive growth.
“In terms of our export market destinations, the top ones are Hong Kong — as you know Hong Kong is a hub, and from there it goes to North America, China, and Europe. Next to Hong Kong, we have US, China, Japan, Singapore, and Germany,” he said.
Most imports come from China, Taiwan, Japan, Singapore, Korea, and the United States.
Electronics exports jumped by around 4% in 2019 after hardware demand for new technologies like 5G, wearable, Internet of Things, collaborative robots, and virtual reality drove up overall demand.
Touted as a compact priced as a subcompact, hopes are high for new crossover
MAXUS PHILIPPINES is further upping the ante in the war for your crossover cash. Last Friday, it digitally presented the D60 compact crossover — said to be a vehicle boasting “affordable luxury and utility.”
In a speech, AC Motors President for the Automotive Group Toti Zara described the D60, the fifth release of Maxus here since opening shop in June 2019, as a milestone that also underscores what brand means for the Ayala-led group.
“The Maxus brand strengthens the commercial vehicle lineup (of the) business. It fits well in complementing our other brands. We are confident commercial vehicle segments, pickups, vans, and trucks will recover in 2021 despite recent safeguard measures imposed by government. Over the past five years, commercial vehicles grew from 25% of total industry to 34% in 2020,” said the executive.
The company is banking on the D60 compact crossover to help drive its business in 2021, and new Maxus Philippines General Manager Jun Cajayon expressed hope that the model will attract attention via a particularly compelling value proposition. “We’re hitting subcompact pricing (with our compact product),” he said. The D60 is priced at P1.148 million for the 1.5T Pro variant (a five-seater), and P1.258 million for the 1.5T Elite (seven-seater).
Another Maxus model is set to be unveiled in the near future, with three more depending on how the year pans out. Speaking of, the company has set lofty goals for itself in 2021. “We are going for five times our volume (in 2020),” continued Mr. Cajayon. The company registered around 200 units in sales last year, so this year that number is expected to breach the 1,000-unit mark. The G10, T60, and G50 have been the main sales drivers in the past and now, the D60 is expected to take its place “as a critical player in terms of volume.” In fact, it is expected to crack the top three for Maxus.
If you like what you see in the D60, don’t waste time hemming and hawing. With the imposition of the controversial safeguard duty on imported vehicles, those prices will keep only while supplies last. Mr. Cajayon said the company was lucky it had imported around 100 units of the D60 before the additional tariff.
Both trims of the SUV are powered by a four-cylinder inline 1.5-liter turbocharged gas engine mated to a seven-speed dual clutch automatic transmission. The system generates 169ps and 250Nm and said to be “configured for performance and fuel efficiency.”
Maxus points out that the D60 is effectively the longest crossover in its class, and is but “70 to 80 millimeters shorts of some full-size SUVs.” It gets a slew of active and passive safety systems: electronic stabilization program, electronic parking brake with auto hold, cruise control, front dual and side air bags, reverse camera, a tire pressure monitoring system, rear park distance control, and additional front park distance control for the Elite variant. Maxus employs double layer welding technology to ensure the “overall strength and quality of its exterior structure.”
The D60 variants have an eight-inch (almost upright tablet-like) infotainment screen and feature rear air-conditioning. The Elite receives keyless entry and a push-start system, leather seats, and folding side mirrors.
For more information, like and follow the Maxus Philippines Facebook page and Instagram account (maxusph).
THE Securities and Exchange Commission (SEC) has approved guidelines that will further promote transparency in the ownership of corporations, which could help prevent money laundering and terrorist financing in the Philippines.
In a memorandum circular, the corporate regulator provided measures such as prohibiting the issuance of bearer shares, and requiring the disclosure of the identity of beneficial owners or persons who own or control corporations.
SEC Chairperson Emilio B. Aquino said illicit activities such as money laundering and terrorist financing usually come from arrangements that let shareholders or members hide their identities, thus increasing the risk of being misused.
“The newly issued guidelines will provide the commission with adequate, accurate, and timely information to combat such unlawful activities, while cementing our commitment to international standards and best practices against money laundering and terrorist financing,” Mr. Aquino said.
Under the memorandum, the SEC mandates that no corporation or entity can issue, sell or offer for sale or distribution bearer shares and bearer share warrants, where the name of owners are not indicated in the physical stock certificate and not recorded in the stock and transfer book of the issuing corporation.
“Bearer shares are equity securities owned by a certain person or entity that holds the physical certificate, which enables the transfer of ownership of shares of stock by mere delivery of such certificate,” the SEC said.
“Bearer share warrant is a document certifying that the bearer is entitled to a certain amount of the fully paid shares of stock of a corporation,” it added.
Further, the new guidelines require corporations, aside from publicly listed companies, to disclose and record the alienation, sale or transfer of shares of stock in their stock and transfer book within 30 days, including the date and the persons involved in the transaction.
According to the SEC, the new guidelines also prohibit the payment of dividends to any person or entity unless the name is indicated in the records of the corporation as the owner of the said shares of stock.
However, it does not include dividend payments made by publicly listed companies to the Philipine Central Depository nominee or any similar entity certified to be the depository and custodian of shares used for trading in the stock exchange.
“The guidelines likewise require newly registered corporations to disclose the identity of the persons on whose behalf they were registered and the nominators/principals of nominee incorporators/first directors/trustees and shareholders within 30 days from receipt of their certificates of registration,” the SEC said.
Meanwhile, the SEC said nominee directors, trustees, and shareholders of existing corporations are required to disclose their nominators and principals within 30 days after the guidelines take effect, or 30 days from the time they assumed the roles in their respective companies.
The commission also mandates all corporations to keep sufficient and accurate data on their beneficial owners at their principal offices.
“Noncompliance shall be sanctioned with a fine of P5,000 to P2 million, plus up to P1,000 for each day of continuing violation but not exceeding P2 million; suspension or revocation of the certificate of incorporation; and other penalties the commission may impose,” the SEC said.
The SEC said the new guidelines meet the recommendations issued in a report by the Financial Action Task Force (FATF) in October 2019.
Some of the FATF’s recommendations include the creation of measures that will avoid the misuse of bearer share warrants, nominee directors, and nominee shareholders for money laundering and terrorist financing, and to ensure that mechanisms work to ensure that data on a company’s beneficial ownership can be found out in a timely manner.
IT’S BEEN a long while since I last frolicked around Tagaytay. Last year’s volcanic unrest, and the subsequent imposition of the enhanced community quarantine (ECQ) have left me with little opportunity to revisit this weekend favorite. So, I was happy to finally have the chance for a quick rendezvous to the lovely Escala Hotel there; and even happier that the vehicles I had to drive back and forth were the handsome 2021 BMW X5 and X7 SUV siblings.
X5 I set out from BMW’s Libis dealership driving the X5 luxury midsize SUV, which I’ve always found to be a model with a good blend of luxury and practicality. From the get-go, it is self-evident that the car is made with good workmanship, and with quality materials — one of the main reasons why I would ever consider paying extra to acquire a premium vehicle in the first place. The car has a classy, leather-wrapped dashboard, boasts Vernasca leather design-perforated upholstery, and is equipped with a plethora of technology. It now supports wireless Apple Carplay and offers power-adjustable front seats with memory (for the driver), among others.
Moreover, the X5 has a nice, strong engine. Its 3.0-liter BMW TwinPower turbodiesel powerhouse, mated to an eight-speed automatic tranny, will not disappoint — offering an athletic 265 horses, combined with an impressive 620Nm of maximum torque at 2,000-2,500rpm. While you might think that this diesel powerplant could compromise vehicle NVH (noise, vibration, and harshness), you’ll be delighted to know that BMW really did its homework when it built this car. It has very good insulation; you’ll forget you’re driving a diesel, and hardly hear any outside noise, for that matter. This afforded me a relaxed and pleasurable drive through C5 and into the SLEX, en route to Tagaytay.
Oh, and remember that one particular lane along C5 with those horrible patches of bad pavement (because they’ve been constantly pounded by heavy trucks)? I occasionally found myself driving over them in morning traffic, but the X5’s suspension soaked them up easily. I also took the liberty of experimenting with the X5’s different drive modes, depending on the situation: Eco Pro, for that morning traffic crawl; and Comfort Mode, for the rest of the faster-moving stretches of C5. Needless to say, Sport Mode was my favorite — the SUV’s anticipation to go faster was especially fun on the highway. It also allowed me to overtake vehicles easily and with greater confidence. Furthermore, I noticed the X5 did not lose its poise even when going through fast corners.
It took us about two hours to arrive at Escala Hotel, where we had a satisfying lunch (that came in big portions) amid cool weather and a dearly-missed view of Tagaytay Lake. After our pleasant meal, the X7 was waiting.
X7 Now, I knew the X7 would be good. But frankly, I didn’t expect it to be this good. For starters, I am not someone who gravitates towards large, full-size vehicles, and the X7 is the largest luxury SUV that BMW has. But the X7 is just exceptionally comfortable and luxurious — it actually got me thinking why the phrase “woman cave” was never coined to describe large wonderful vehicles. That is, until I realized that the combination of words didn’t exactly sound appropriate. Nevertheless, you get what I’m trying to say here — it felt like the X7 had everything I would ever need to be happy while on the road.
As a driver, I was delighted with the X7’s quick bursts of acceleration and ultra-smooth power. The car sailed like a boat, and that must have been its adaptive two-axle air suspension at work. There was nothing to complain about NVH; the cabin was quiet as a reading room, but only more comfortable to be in. Opulent appointments constantly reminded me that I was aboard a luxury vehicle. Attractive Merino upholstery and fine wood trim accents give the cabin sophisticated flair; while the panoramic sunroof and other bells and whistles — such as the crystal shifting knob, that exudes that extra bling — all come together to pamper the driver and its occupants. I wouldn’t mind getting stuck in traffic for long hours in this car, I remember telling myself. And if some vehicles, in the words of a friend, were meant to “Manila-proof” you from the inconveniences of the city, well, this sure is one of them.
The BMW X7 is packed with technology (including a rearview camera with surround view and the like), a suite of safety systems, a BMW Live Cockpit Professional, and BMW laser lights. It shares the same twin power turbo inline six-cylinder diesel engine as with the X5 but, for some reason, just feels ever so much smoother to drive.
Sure, there was more traffic on our way back to Manila. But with the X7’s Harman Kardon surround sound system, I savored every minute driving it back, while tuning in to ’80s music and enjoying the entire drive experience. It really does make a huge difference, after all. A luxuriously pleasurable car can help keep your spirits high, as you navigate through your daily drive in our otherwise high-stress environment of the city.
BUSKOWITZ Energy is looking at raising around P1 billion for solar rooftop projects this year, about 40% of which would be funded by a local company, the renewable energy developer’s top executive said.
“Our initial idea is to raise a billion [pesos], maybe a little less, given that it’s already February. [Our] target is to invest about 800 to 1 billion [pesos] this year,” the firm’s Chief Executive Officer James Buskowitz told BusinessWorld in a video call Thursday.
The projected capital raising is more than twice the previously recorded amount in 2019. “In 2019, we raised about 300 [to] 400 million [pesos]… every two years, we’ve almost doubled our capital raises,” he said.
Mr. Buskowitz said that the firm did not raise capital in 2020, as the company was spending funds raised from previous years for services, including outright purchase and residential projects.
He explained that the firm planned to raise 40% of the target fund-raising from a local firm, adding that Buskowitz Energy would disclose more information about the infusion in the coming weeks.
According to Mr. Buskowitz, 60% of the firm’s planned capital will come from foreign banks and wealth funds.
“We’re currently discussing with foreign international banks and sovereign wealth funds, the debt component of the projects. So far, we have ongoing discussions with them and it’s between two other international financiers that are going to be providing the debt. We’re looking at around 500 to 600 million [pesos] in debt capital for projects as an initial start,” he said.
This year’s planned capital-raising would mainly go to rooftop solar projects, Mr. Buskowitz said.
Last year, Buskowitz Energy was able to install a total capacity of 5 megawatts of solar in the residential and commercial segments.
In November, the firm held a three-day “Black Friday Sale” that gave a 40% discount for its signature Solar Home Systems per package, with rates starting at around P119,000.
On Thursday, Mr. Buskowitz said that the sale accounted for 30% to 40% of the firm’s sales in the residential segment last year.
“The Black Friday Sale was very effective… That was very, very successful and it was also a very good discount. It’s something that we would like to be offering a lot more,” he said.
Buskowitz Energy is a sustainable solutions company that aims to grow local capabilities in the country’s solar photovoltaic industry.
RATES of Treasury bills (T-bills) on offer this week will likely move sideways ahead of the government’s sale of three-year retail Treasury bonds (RTBs).
The Bureau of the Treasury (BTr) is looking to raise P20 billion from the T-bills on offer on Monday, broken down into P5 billion each via the 91- and 182-day debt papers and P10 billion from the 364-day instruments.
Rates of the short-term debt will likely inch down by 5 to 10 basis points (bps) amid abundant liquidity in the market, a bond trader said by phone on Friday.
Meanwhile, another trader said the auction would still attract lower yields despite the upcoming RTB sale this week as there is strong demand for the shorter-tenored T-bills.
“Yields for T-bills will move sideways to down by around 5 bps since end-users are still looking to purchase T-bills. For now, traders may limit trading short-term bonds until the rate setting of the RTB,” the trader said via Viber over the weekend.
The BTr last week hiked the volume of T-bills it awarded to P24 billion from the P20-billion program as total bids reached P103.65 billion and rates declined across the board.
Broken down, the BTr borrowed P7 billion via the 91-day debt, more than the P5-billion plan, from P19.56 billion in bids. The three-month papers fetched a lower average rate of 0.917% against the 0.969% quoted in the Jan. 25 auction.
The government also raised P7 billion via the 182-day T-bills, above the P5-billion program, as tenders amounted to P33.456 billion. The average rate of the six-month debt declined by 11.3 bps to 1.21% from the previous week’s rate of 1.323%.
The Treasury, meanwhile, made a full P10-billion award of the 364-day securities it offered at an average rate of 1.492%, down 5 bps from 1.542% previously.
Meanwhile, the BTr will hold the rate-setting auction for the three-year RTBs on Tuesday as it looks to raise at least P30 billion from the retail papers. It will offer the bonds in denominations of P5,000 from Feb. 9 to March 4, unless ended earlier.
The second trader expects the rate of the three-year bonds to range from 2% to 2.375%.
“The issuance comes at a time when inflation for the previous month was higher than the expected consensus and above the target range of the BSP (Bangko Sentral ng Pilipinas),” the trader said.
The government offers RTBs to encourage small retail investors to invest, with higher returns than prevailing market rates. These are also considered low-risk investments because they are backed by the state.
At the secondary market on Friday, the 91-, 182, and 364-day T-bills were quoted at 1.041%, 1.204%, and 1.416%, respectively, while the three-year tenor fetched 2.074%, based on the PHL Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website.
The second trader said yields on government securities on offer this week will also be affected by rising interest rates in the United States as markets await the $1.9-trillion stimulus package of US President Joseph R. Biden, Jr.
“This may be offset by slower local loan growth since banks remain wary of credit risks and some banks may be looking to place excess liquidity in safer assets,” the trader added.
Bank lending contracted for the first time in more than 14 years in December as lenders tightened credit standards while demand for loans remained weak.
Latest central bank data showed outstanding loans by big banks went down by 0.7% to P9.178 trillion that month from P9.242 trillion a year ago, turning around from the 0.5% uptick in November. It was the first decline since September 2006’s 1.9% contraction.
The BTr plans to borrow P140 billion from the local debt market this month: P80 billion via weekly auctions of T-bills and P30 billion from a Treasury bond offer.
The government is looking to raise P3 trillion this year from domestic and external lenders to help fund its budget deficit seen to hit 8.9% of gross domestic product. — B.M. Laforga
